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Defence Sector – Q3FY25 overview – Mixed Bag performance


Overall operational performance of defence companies during this quarter was a mixed bag.
Bharat Dynamics reported strong revenue growth of 38% YoY in Q3FY25 but this strong growth came after a subdued H1FY25 when the company faced some supply chain issues. Margin remained low at 15%. on account of higher raw material cost and higher others cost.
Solar Industries also reported strong growth of 38% YoY in Q3FY25, mainly led by healthy execution in exports and defence segments. Domestic explosives segment was muted as the volumes were impacted due to elections and monsoon.
Cochin Shipyard reported moderate revenue growth of ~9% as the shipbuilding segment revenue declined by 14% while ship-repair segment witnessed strong growth of 65% YoY.
Midhani reported ~6% de-growth in revenue as execution remained muted during the quarter.
Data Patterns also reported 16% revenue de-growth, due to a deferment of scheduled delivery of completed contract by one of the customers.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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